Slides in this set
When a high price is set for a product when it first
enters a market. This strategy is used when there is
When a business launches a new product it hopes
that there are people who are desperate to buy the
product so set the price high.
Helps firms to obtain the money needed to repay
development costs.…read more
This approach is used to launch a product with a low
price in order to get sales quickly.
This strategy works best if customers are very
sensitive to price.
By producing on a larger scale, a business may get
its name known quickly & may also benefit from lower
costs by buy in supplies in bulk and from other
economies of sale.…read more
Firms that use competitive pricing try to match the
price that others are charging.
Competitive pricing is common in markets where
there are a few big firms competing directly against
If products are similar then the price becomes an
important factor that will influence a customer's
decision to buy the product.…read more